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The European Union revealed they will match Donald Trump's import duties on steel, increasing to double levies on foreign steel to 50% in a move condemned as "a critical danger" to the sector in Britain.

Unprecedented Crisis for UK Steel Exports

With 80% of British exports going to the European Union, this policy shift creates the British steel sector's largest crisis, as stated by the lobby group speaking for the sector.

New EU Measures and Regulations

Through its proposal submitted to the EU legislature on Tuesday, the European Commission additionally suggested reducing the existing quota for tariff-exempt steel and requiring foreign suppliers to state the origin of steel production to prevent Chinese producers diverting exports through other countries.

EU steel sector faced potential collapse – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Existing System

These measures are intended to supersede a import framework that has been in operation for the last seven years and which is set to expire in 2026 and is now considered not fit for purpose. Inaction could have been "catastrophic" for the sector, a European official said.

Industry Response and Concerns

Nevertheless, industry representatives, head of the industry body British Steel, said EU increasing duties would create "the biggest crisis the British steel sector has encountered".

There were calls for the government to "acknowledge the critical necessity to implement domestic protections to protect" the UK steel industry – which is affected by a 25% duty imposed by the US earlier this year – from the risk of millions of tonnes of world steel diverted away from American and EU markets.

This flood of imports "could be fatal for many of our remaining steel companies.

Labor and Political Calls

Alasdair McDiarmid, representative at steelworkers' union the industry union, said the new measures represented "a survival risk" to British steel production.

Labor and business representatives urged the UK government to begin talks immediately with the EU on country-specific tariff exemptions, noting that the UK was now the EU's primary export market.

Industry Background

Sector representatives in the EU have also been warning for several months that their own industry confronts being "eliminated" through the new 50% tariffs on exports to the US combined with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a essential sector, providing elemental components in everything from building frameworks, wind turbines and railways to dishwashers and cutlery.

Implementation and Next Steps

These proposals require approval by EU nations and the EU legislature, with the EU executive head calling on member states and MEPs to act fast in backing the proposal.

Should approval be granted, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will apply a fifty percent tariff on imports exceeding the limit and require nations exporting into the bloc to declare where the steel was melted and poured to avoid bypassing of the measures.

Exemptions and International Cooperation

Norway, Iceland, and Liechtenstein will not be subject to tariff quotas or tariffs due to their strong economic ties in the EEA, the European Union has said.

Alongside the proposal, the EU is pursuing a "metals alliance" with the US to ringfence their respective economies from overcapacity.

EU must take immediate action, and firmly, before operations cease in large parts of the EU steel industry and its value chains.